Republic of the Philippines Department of Environment and Natural Resources Visayas Avenue, Diliman, Quezon City ‘e DENR Administrative Order No. 2017-__08. MAK 15 2017 SUBJECT: GUIDELINES IN OPERATIONALIZING THE TRANSITION OF THE DENR’s PROGRAMS AND PROJECTS INTO GREEN ECONOMY MODELS (GEM) In consonance with Republic Act No. 10771 dated April 29, 2016, otherwise known as “Philippine Green Jobs Act of 2016”, which aims to promote the creation of green jobs, granting incentives and appropriating funds therefor; and in view of the approval of the Philippine Development Plan (PDP) 2017-2022, which pursues the realization of inclusive development, anchored on the long-term vision or AmBisyon Natin 2040: Matatag, Maginhawa, at Panatag na Buhay; and in view of the paradigm shift of the Department following the adoption by the United Nations Member States of the 17 Sustainable Development Goals of the 2030 Agenda for Sustainable Development, which addresses persistent challenges to sustainable development, the following Guidelines are hereby issued: Section 1. Objectives In the promotion of the rights of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature and the affirmation of labor as a primary social economic force in promoting sustainable development, it is the declared policy of the State to identify needed skills, develop training programs, and train and certify workers for jobs in a range of industries that produce goods and render services for the benefit of the environment, conserve natural resources for the future generation, and ensure the sustainable development of the country and its transition into a green economy. The general objective of this Order is to operationalize the transition of the Department's programs and projects into Green Economy Models (GEM) in the Environment and Natural Resources (ENR) Sector, anchored on the principles of Social Justice and Ecosystems Integrity. Specifically, it aims to: 1.1 Transform DENR programs and projects into GEMs where household members create sustainable goods and services for the rehabilitation of degraded ecosystems; 1.2 Create viable community enterprises where households are the focal members and players in creating value-added environmental products and services; and 13 Accelerate the rehabilitation of degraded ecosystems and promote the protection of the environment through the creation of green jobs. Section 2. Definition of Terms. The following terms as used in this Order shall be defined, as follows: 2.1 Green Economy ~ refers to one, which is low-carbon and resource-efficient, and results in the generation of green jobs and in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.2.2 Green Jobs — refers to employment that contributes to preserving or restoring the quality of the environment, be it in agriculture, industry or the services sector. Specifically, but not exclusively, this include jobs that help to protect ecosystems and biodiversity, reduce energy and materials and water consumption through efficiency strategies, decarbonize the economy, and minimize or altogether avoid generation of all forms of waste and pollution. Green jobs are decent jobs that are productive, respect the rights of workers, deliver a fair income, provide security in the workplace and social protection for families, and promote social dialogue. 2.3 Community Enterprise - a number of households in a community with a minimum of 15 member households that voluntarily form themselves into an enterprise to engage in various economic activities and subsequently registered with the concerned government agency. 2.4 Community’s Management Ser ‘Center (CMSC) ~ an independent, non-profit oriented organization strategically located in a district or area that provides management and administrative support to household partners in order for the Community Enterprises to be viable and sustainably managed. The CMSC should be registered with the Securities and Exchange Commission (SEC) 2.5 Household - consists of one or more people who live in the same dwelling and share at living accommodations, and may consist of a single family or some other grouping of people. 2.6 Participating Member Household (PMH) ~ a household that voluntarily agrees to participate in a Community Enterprise and the CMSC. 2.7 Social Entrepreneurship - Social entrepreneurship refers to the practice of combining innovation, resourcefulness and opportunity to address critical social and environmental challenges. Social entrepreneurs focus on transforming systems and practices that are the root causes of poverty, marginalization, environmental deterioration and accompanying loss of human dignity. In so doing, they may set up for-profit or not-for-profit organizations, and in either case, their primary objective is, to create sustainable systems change. They have access to serve markets. the whole series of activities that create and build value at every step of a production process of an environmental product or services. 2.9 Household Agreement — an official document detailing the roles and responsibilities of both the PMH and the DENR in the implementation of a desired community enterprise. DENR shall have a direct Household Agreement with the PMH regarding the details of the community enterprise, such as. tenurial rights and others. Section 3. Scope and Coverage. The implementation of this Order shall cover all development and rehabilitation activities executed in all the forest, mining and coastal areas or otherwise the ridge-to-reef ecosystems under the Department. This will also involve the organization of Community Enterprises in the following development and rehabilitation activities implemented by the Department, viz: a Enhanced National Greening Program 3.2. Biochar Program 3.3 Bamboo Plantation Program 3.4 Mangrove Rehabilitation Program 3.5 Ecotot Activities 3.6 Mining Rehabilitation3.7 Pollution Mitigation 3.8 Sustainable Coral Reef Ecosystems Management Program 3.9 Coastal and Marine Environment Management Program 3.10 Bioremediation 3.11 National Ecosavers Program 3.12 Others Section 4. Qu: ied Participants of GEM 4,1 All interested households living within and adjacent to existing and potential project sites; 4.2 Organized Community Enterprises composed of households who have grouped themselves and showing interest to engage in any development and rehabilitation projects of the Department that would lead to Community Entrepreneurship; and 4.3. Ideally all participants have or will soon have tenurial rights and/or access rights, formal or informal, over the DENR-controlled resource base. Section 5. Operationalizing the Transition to GEM The transition of DENR programs and projects to GEM would entail three (3) main stages, namely: a. The conduct of a Community Enterprise Focus Group Discussion; b. The Legal or Formal Organization of a Community Enterprise; and . Detailed but brief operating policies of the Community Enterprise that detail prices, quality standards, handling, rejects, penalties that all PMHs agree on. 5.1 The Conduct of a Community Enterprise Focus Group Discussion (FGD) The initiation of an FGD in a certain locality or in a potential project will include the participation of a Social Entrepreneur and Participating Member Households (PMHs) coming from People’s Organizations (POs) in the area, if relevant. The Social Enterpreneur is one who has a track record in a related environment- related business to that of the proposed Community Enterprise that would help facilitate the FGD in identifying a sure market potential for a certain product, ie. Bamboo. In the FGD, it is important that the “value adding chain” of a product is traced so that the “value distribution” of a product’s price is equitably but realistically determined. This is done by working backwards on value-added created from parts of the production-distribution chain all the way back to the PMH, i.e. the value-added to a bamboo pole from cutting, gathering, transporting, wholesaling and retailing. Most importantly during the FGD, the PMHs should agree on what Community Enterprise will be formed for the market identified for their product and how costs and benefits are to be distributed equitably. The expected output of the FGD process is a simple document written in local dialect that clearly spells out roles, responsibility and prices of products based on agreed quality standards, The ultimate objective of an FGD is the empowerment of the PMHs and the community. ‘The FGD is the venue where baseline data of each PMH is derived and stored by the CMSC and DENR. 5.2 The Creation of a Community Enterprise With a minimum membership of fifteen (15) households, a Community Enterprise can be organized during the FGD process. The sole objective of a Community Enterpriseis to engage in the production of an environmental product or services, i.e. Activated Biochar or Kayaking services in an ecotourism project, for the members to earn income in a sustainable manner while protecting and rehabilitating the environment. ‘The Community Enterprise is to be officially organized and registered with the concemed government agency. The processes and standards in the production of environmental products and services have to be ironed out and agreed upon by the members of the Community Enterprise including how costs and benefits are to be equally distributed. During the FGD process, DENR field personnel will present to the PMHs the appropriate Household Agreement to be entered into with the Department. This document covers the roles and responsibilities of each houschold and the DENR in the implementation of PMHs’ desired enterprise. In addition, appropriate tenurial instruments will be issued to organized PMHs in Community Enterprises covering activities, such as, agro-forestry, bamboo planting, even mangrove mud crab production or eco-tourism rights, among others, to instill "malasakit" for the GEM programs and projects. 5.3 The Formation of a Community's Management Service Center (CMSC) An independent, non-profit oriented organization, the CMSC is organized to provide management and administrative support to all PMHs in order for the Community Enterprises to be sustainably managed. The CMSC should be registered with the Securities and Exchange Commission (SEC). As a management strategy, a Community Management Service Center shall be created for each Municipality or Congressional District where various Community Enterprises exist. The CMSC shall be composed of at least two (2) technical and competent personnel, one with a background in management and the other in accounting and supported by official representatives of the CMSC from individual barangays where the projects are located. A Board for every CMSC will be organized composed of representatives from Civil Society Organizations (CSOs), reputable concemed citizens, and others, with a 3- year term concurred to by the DENR Undersecretary for Field Operations. Representatives from the DENR will be appointed by the Secretary and shall act as Honorary Members of the Board. The functions of the CMSC is to act as Household data base depository of all PMHs and community enterprises including, but not limited to, all on-going activities being implemented and actual accomplishments, which shall be used as bases in the release of payments to all participating project partners. The CMSC can act as a common accounting service for Community Enterprises within its jurisdiction. Section 6. Implementation Arrangement The transition of DENR programs and projects to GEM shall be implemented by all field offices of the DENR and field offices of the Line Bureaus and Attached Agencies under the supervision of the Office of the Undersecretary for Field Operations and the Assistant Secretaries for Field Operations for Luzon, Visayas and Mindanao, where applicable. All DENR Bureaus and Attached Agencies shall provide technical assistance in the implementation of this Order. A GEM Implementation and Coordinating Center will be created the national and regional levels to coordinate and monitor the implementation this Order.Section 7. Funding. The Department shall allocate sufficient funds to implement this Order. Section 8. Supplemental Guidelines. The Office of the Undersecretary for Field Operations may issue technical bulletins to effectively implement this Order in coordination with concerned Bureaus and Offices of the Department. Section 9, Repealing Clause. This Administrative Order shall supersede other issuances that are inconsistent herewith, Section 10, Effectivity. This Order shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation and upon acknowledgement of receipt of a copy thereof by the Office of the National Administrative Registry (ONAR). i i O31418 Regommending Approval: PHILIP G. CAMARA OIC, Undersecretary for Field Operations PUBLICATION ; MALAYA BUSINESS INSIGHT Mareh 31, 2017 ACKNOWLEDGEMENT : U.P, LAW CENTER April 12,2017 Jimj/madgor3.5.2017